🚜xVAULT
Overview
What is $xVAULT?
xVAULT token acts as a call option for Vault, enabling its holder to buy Vault at a discount to the current market price. In contrast to conventional options, xVAULT has no expiration date.
The current discount stands at 10%; however, the DAO governance reserves the right to modify its value.
How to get $xVAULT?
$xVAULT is distributed to VAULT-ETH LP stakers.
To attract new audiences and foster growth the initial stages of the project, we plan to provide vaults to projects native in the Arbitrum ecosystem which we will update the token in the vault every seven days. This approach expands our holder base and strengthens the protocol by bringing in new perspectives.
$xVAULT is distributed to Genesis Vault stakers
The Genesis Vault is a one-sided staking pool that rewards projects within the Arbitrum ecosystem with xVAULT tokens in exchange for staking their native token. These exclusive pools are instrumental in kickstarting the protocol's initial treasury and fostering growth while simultaneously building a strong and engaged community. The vault updates every 7 days to attract new investors allowing our protocol to flourish.
1
Arbitrum ( $ARB )
500
2
Redacted
150
3
Redacted
100
4
Redacted
50
5
Redacted
20
32.5% of the supply has been allocated to rewards in our pools
Token allocation
Why xVault?
Providing call options provides multiple advantages that realign the incentives to drive the long-term growth of the protocol including:
Reallocation of cash: By utilizing xVAULT as the reward token instead of Vault, the protocol can redirect profits from short-term farmers towards itself, ultimately benefiting long-term liquidity providers of the Vault token.
More yield due to treasury expansion: By allocating a higher portion of staking rewards to the protocol, the overall yield can be boosted through an expanded treasury. While this trade-off may result in a reduced share for short term farmers, the long-term benefits include higher yield returns for long term holders. Growing the treasury ultimately leads to better outcomes for the protocol and its participants.
Ability to grow the treasury without a token tax: The majority of FAAS tokens rely on a token tax to bolster their treasury, which is capital inefficient and increases the difficulty for the native token to be listed on centralised exchanges; a core driver of long term growth. Our call option method allows us to sustainably grow the treasury while maintaining 0 tax on the token.
Maturation period
Following the end of the Genesis epoch, newly minted xVault will have a 1 month maturation date before it can be exchanged for Vault at a 10% discount
When a user stakes with a referral code in the VaultDAO ecosystem, the maturation time of the xVault tokens they earn is reduced. The extent of this reduction depends on the staking tier of the referral code creator.
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